The core business, says Blodget, was about in line with expectations. The core business had $11.4 billion in gross revenue versus expectations of $11.5 billion, and adjusted operating profit was $3.95 billion versus expectations of $4.1 billion.

Motorola, meanwhile, did $2.6 billion in revenue versus expectations of $2.9 billion. It also had adjusted losses of -$151 million, versus expectations of -$28 million.

For this reason, Blodget thinks Google is actually doing alright, despite the big miss. The core business is doing what people expect. It's the terrible Motorola division that's dragging everything down. And while this is bad, it's not entirely surprising. Most people knew Motorola was going to be a big challenge. It just might be an even bigger challenge than expected.

Below are some of the key numbers from the release.

Site revenue: $7.73 billion.

Paid clicks: Up 33% on a year over year basis, and up 6% on a sequential basis.

Cost per clicks: Down 15% on a year over year basis, and down 3% on a sequential basis.

Traffic acquisitions costs: $2.77 compared to $2.21 for same period a year ago.

Motorola revenue: $2.58 billion. $1.78 billion from the mobile segment and $797 million from the home segment. (Analyst expectations were ~$2.9 billion, according to Citi's Mark Mahaney.)

Motorola operating loss: $527 million ($505 million for the mobile segment and $22 million for the home segment)

Other cost of revenues: This was a big jump going to $3.78 billion for the quarter, up from $1.17 billion the year prior. Here's how Google defines other cost of revenues: "primarily of data center operational expenses, amortization of intangible assets, content acquisition costs, credit card processing charges, and manufacturing and inventory-related costs"

Free cash flow for the quarter: $3.3 billion

Total cash on hand: $45.7 billion

Headcount: "On a worldwide basis, we employed 53,546 full-time employees (36,118 in our Google business and 17,428 in our Motorola business) as of September 30, 2012, compared to 54,604 full-time employees as of June 30, 2012."